Coupang sues local NGO for allegedly spreading false information

Coupang, an e-commerce firm based in Seoul, South Korea, has filed a lawsuit against a local non-governmental organization (NGO). The company is accusing the civic group of spreading false information on the company's audit report.

As per The Korea Herald, Coupang announced on Tuesday, Aug. 30, that it has taken legal action against the People's Solidarity for Participatory Democracy. The said NGO released a statement claiming the company is illegally supporting its subsidiary called the Coupang Private Label Brands (CPLB) by collecting just 2.55% commission while asking about 31.2% commission from other sellers.

The group explained that the hefty commission also includes the standard brokerage fee and advertising fee. In response to the allegation, Coupang immediately debunked the claims by saying the PSPD has mistaken the 2.55% for a commission when they have clearly specified in the audit report that it is an "outsourcing service fee."

The e-commerce retail giant further asserted that the CPLB and other direct sellers that sell products to Coupang do not pay the brokerage fee. The company added that its commission percentage is actually lower compared to the average amount. Coupang also stressed that the 31.2% fee only applies to about 0.9% of the total cases.

"The NGO is either knowingly or unintentionally distorting facts and this is not the first time," an official of Coupang denies the allegations in a statement. "The NGO has argued Coupang is receiving 31.2 percent commissions from all sellers but it is not true."

The company also clarified, "At the conference, PSPD claimed that Coupang charges sellers a commission fee of around 31.2%, combining a basic fee of four percent to 10.8% with an advertising fee, while we are unfairly supporting our subsidiary CPLB with a low commission of 2.55% and this is not true as well."

Finally, Coupang is determined to hold the People's Solidarity for Participatory Democracy civic group legally accountable for spreading false information about the company, regarding the fee collections in particular. The company firmly said the group misrepresented an audit report of CPLB and declared this as true during a press conference that was held on Tuesday, as per The Korea Times.